Bill > HR2759

This bill amends the Internal Revenue Code to modify accounting rules for residential construction contracts, specifically focusing on condominiums. Currently, contractors must use the percentage of completion method (a tax accounting approach where income is recognized proportionally as a project progresses) for long-term construction contracts. The bill expands an existing exception to this rule by replacing references to "home construction contracts" with "residential construction contracts" and adjusting the time frame for qualifying contracts from 2 years to 3 years for certain types of residential projects. This change would allow more condominium construction projects to use a simpler accounting method, potentially reducing administrative complexity and tax reporting burdens for contractors. The amendments would apply to contracts entered into after the bill's enactment, providing immediate relief for new residential construction projects. By modifying these technical tax accounting provisions, the bill aims to provide more flexibility for contractors working on residential construction, particularly in the condominium sector.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2759/all-info